|
Building a winning approach for your business
Without timely and accurate financial information about their projects, contractors find it difficult to manage their businesses successfully. We provide a variety of tax, assurance, and financial advisory services to meet contractors' needs.
From the accounting and tax standpoint, the construction industry differs from traditional businesses and our accountants are thoroughly familiar with the industry's special requirements.
Assurance and Tax Related Specifics
The three most important activities that must be recorded correctly for both GAAP and tax purposes are contract costs, progress billings, and revenues. Treatment of construction period interest, allocation and capitalization of costs, the selection of the correct method of recognizing revenues (e.g. percentage-of-completion method, completed-contract method) are just some of the issues that require the special attention.
Annual financial statements usually have to satisfy the needs of various users, such as:
- Surety bond underwriters
- State contract licensing agencies
- Banks providing construction financing
- Suppliers and subcontractors
- Project owners (customers)
- Other governmental agencies
A contractor's ownership structure and the entity form are often based to minimize taxes, limit liability, and capital or financing requirements. Whether your construction company is owned by an individual, pass-through entity, or corporation, we have the expertise and experience to help you add value to your organization.
|
